A comment on the collapse of oil prices. Most pushing for divestment from fossil fuels are motivated by the immorality of profiting from destructive activity. But when one looked just at potential returns, it was clear that fossil fuels were a terrible investment. Here's why

Three factors spelled trouble for oil
1. new sources were successively more expensive
2. Alternatives were increasingly cheaper
3. Public concerns would translate to removing subsidies or curtailing use

Demand reduction caused by 2 and 3 would cripple oil companies

We saw that dynamic play out when Shell Oil went to drill in the Arctic (and home-ported its rig in Seattle). High drilling expenses and public opposition killed the effort. (BTW, Shell should thank us for cutting their losses).

These issues, cost of oil production and cost of alternatives were already playing out, even as fossil fuel companies made desperate bids for more subsidies (thorough explainer here) https://www.vox.com/2020/4/20/21224659/coronavirus-stimulus-money-oil-prices-fossil-fuels-bailout

Oil companies were facing a crisis as demand dropped. The coronavirus economic shutdown dramatically accelerated that drop in demand, but the structural issues were there all along and extensively documented by @carbonbubble. https://carbontracker.org/covid-19-and-the-energy-transition/

The hard-headed financial analysis of why fossil fuels are a bad investment has been heard by thousands of institutions around the globe that divested. Unfortunately for WA taxpayers and pensioners, Seattle and State leaders ignored it. Another budget hole to be filled.

To create jobs coming out of this crisis, throwing money at a dying fossil fuel industry is a losing proposition. There are far more jobs in clean energy that help reduce pollution, advance equity and mitigate the next crises. #GreenNewDeal is smart economics

BTW, I've listened in person to city pension advisors, college board members, elected officials, and other "experts" patiently condescending to students, alumni, employees and advocates that are pleading with them to divest. Unmoved by morality or facts they failed their duty.

They should have listened to the kids, who could see the future of oil better than they could.

Credit to @WallaceGlobal @billmckibben @350 @carbonbubble @divestinvestorg (and many more) for their leadership, analysis, funding and support for grassroots action on divestment